Record results: Strong performance; Ince acquisition on track; operational and commercial opportunities being realised
Gordon Dadds Group PLC (AIM: GOR), the London-based acquisitive legal and professional advisory business, is pleased to announce its audited results for the year ended 31 March 2019.
* Adjusted profit before tax is calculated as the profit before tax after adding back non-recurring items (as shown in note 9 to the financial statements) and after deducting the non-controlling interests shown in statutory accounts
** Adjusted earnings per share is computed from adjusted profit before tax after deducting taxation
Financial highlights
- Revenue £52.6m (2018: £31.2m) +69%
- Annualised revenues at the year end of around £70m; grown to £100m of consolidated revenues post year end
- Compound revenue growth of over 80% per annum. since 1 April 2013, from both acquired and organic growth
- Operating profits £15.2m (2018: £8.8m) a 73% increase on 2018
- Adjusted* profit before tax £5.9m (2018: £2.5m) +141%
- Non-recurring acquisition costs and related material items £14.3m (2018: £2.3m)
- Adjusted** diluted earnings per share 18.8p (2018: 10.5p) +79%
- Dividend 4.0 pence per share (2018: 4.0p), making 6.0p for year (2018: 4.0p)
- Net borrowings £2.9m (2018: net cash £8.4 m)
Operational highlights
- Integration of acquired businesses on track
- Acquisition of Ince & Co’s (“Ince”) UK and Chinese businesses from 1 January 2019 and new relationships with Ince’s international offices established post year end in April 2019
- Five acquisitions in 2017-8 fully integrated and planned operational gains being achieved
- Partner and client retention strong across the business
- Increased diversification and broadening opportunity for growth; the Group now operates from eight jurisdictions with cross selling opportunities continuing to be developed
- Lateral hire of three partners and their 20 personnel team in Hong Kong, effective post year end
- Opening of a separate London office within the Lloyds insurance market in June 2019 to strengthen the Group’s services to insurance clients
Adrian Biles, Group Chief Executive, commented:
“This is a great set of results and I’m really proud of the hard work of my colleagues around the world. A major highlight during the year was of course the acquisition of Ince in the UK and China.
“The integration phase of Ince is now complete and I think it’s noteworthy that we did not suffer any partner or client losses during and since the transaction. The opportunity to cross sell by practice area and by geography provided by Ince is huge and has allowed us to accelerate beyond this level.
“We’ve always been a high growth business – having delivered compound annual revenue growth of over 80% for the last five years. Looking forward, we are well-positioned for significant growth as we look to leverage our existing infrastructure through cross-selling, new client wins and further new hires, acquisitions and alliances.”
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